The top 5 tips for saving for your retirement

According to CNBC almost 40% of people in the UK are not saving towards their retirement. As well as providing the State Pension, the government has put measures in place in order to assist the public in saving toward their retirement. These include automatic enrolment into workplace pensions, and the removal of the set retirement age.

If the thought of spending your golden years relying solely on the State Pension sends you into a fit of panic, you should consider additional means of saving. If you, like many others, are not saving toward your retirement take a look at our alternative options and investment ideas below.

Make a plan

If you are serious about saving towards your retirement, you need to make a plan. Take a look at your finances and identify any money that could be used for savings, or find way of cutting back to generate funds. If you’re not sure about how much you should be saving towards your retirement, there are a number of pensions calculators online that can help you work out how much you need to save.

Save with work

As we’ve mentioned above, there is now automatic enrolment in place for UK workplace pensions. Your employer should put the scheme in place so that a set percentage of your pay is added automatically each time you are paid. Even if it’s just a small amount, saving through work will assist in securing an annuity in the future.

Save in a separate bank account

In the same manner as saving through a workplace pensions scheme, it is also important to boost your retirement income with your own savings. If you are able to put a small amount into a savings account each month, this could be used to help clear debt when you reach retirement, or as additional income. If you decide to go down this route, shop around to find a savings account that offers the best rates and benefits.

Work for longer

If you want to ensure you have enough money to see you through your retirement, you could work for longer. Now that the official retirement age has been abolished, as an employee you can choose to work for as long as you want. The majority of employers don’t set a compulsory retirement age.

Make the most of your savings

If you already have savings, or want to make the most of your savings in the future before you retire, it is worth considering an Individual Saving Account. The great thing about ISAs is that they are tax-free. If you have a substantial amount to invest, you can reap the interest benefits.

The sooner you can start saving for your retirement, the better off you will be in the future. No matter what situation you’re in, budget your finances, make savings wherever possible, and get the confidence that you will be financially stable upon retirement.

About the author:

Charlotte Henderson blogs for Saga Annuities. She aims to stop working before she reaches 65, and hopes to travel extensively after she retires.